Power, Oil & Coal - Industry News
| Energy capital raises in 2009 |  |
November 17, 2009 12:43 PM ET
By Jack Chen and Rosy Lum
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Including Energy Future Holdings Corp.'s debt exchange offerings, SNL Energy companies raised more than $3.5 billion of debt and $452 million of equity during the week ended Nov. 13. The midstream sector carried equity, and the power sector carried debt offerings, which also saw an appearance from the coal sector for the first time since Arch Coal Inc.'s $600 million offering in July. So far in the fourth quarter, the energy sector has raised $9.18 billion of senior debt, up from $5.58 billion as of the week ended Nov. 6, and $1.11 billion of equity. Virginia-based coal operator James River Coal Co. on Nov. 13 raised $150 million through an offering of its 4.50% convertible senior unsecured notes due 2015. Net proceeds of approximately $145 million will be used in connection with the termination of James River's letter of credit facility and for working capital and general corporate purposes, which may include acquiring or investing in business or other assets or repayment of outstanding debt. NSTAR raised $350 million through an offering of its 4.50% senior unsecured notes due Nov. 15, 2019. Net proceeds will be used to repay the company's outstanding short-term debt obligations, for general working capital purposes and to pay $500 million aggregate outstanding principal amount of its 8% notes due Feb. 15, 2010. Banc of America Securities and Goldman Sachs & Co. served as joint book-running managers on the offering. Ameren Corp. subsidiary Ameren Energy Generating Co. on Nov. 12 raised $250 million through an offering of its 6.30% series I senior unsecured notes due April 1, 2020. Net proceeds will be used to repay outstanding short-term debt incurred to finance capital expenditures and other corporate requirements. Barclays Capital, Morgan Stanley & Co., RBS Securities and Scotia Capital served as joint book-running managers on the offering. PG&E Corp. subsidiary Pacific Gas and Electric Co. on Nov. 10 completed an offering of $550 million of its 5.40% senior unsecured notes due Jan. 15, 2040. Net proceeds of about $536.9 million will be used for working capital purposes, the company said. Bank of America Merrill Lynch, Deutsche Bank Securities and RBS Securities served as joint book-running managers on the offering. Entergy Corp. subsidiary Entergy Louisiana LLC raised $400 million through an offering of its 5.40% secured first mortgage bonds due Nov. 1, 2024. Net proceeds will be used either to repurchase or redeem one or more series of the company's outstanding securities on or prior to their stated due dates. J.P. Morgan Securities, KeyBanc Capital Markets and RBS Securities served as joint book-running managers on the offering. Enogex LLC on Nov. 10 completed an offering of $250 million of its 6.25% senior notes due 2019. Net proceeds will be used for general corporate purposes, including repaying at maturity a portion of the $289.2 million outstanding aggregate principal amount of the 8.125% senior notes that mature Jan. 15, 2010. Energy Future Holdings and Energy Future Intermediate Holding LLC on Nov. 10 completed their debt exchange offerings, for which they raised about $160.9 million and $196.6 million, respectively. Proceeds from the exchange offers will be used to reduce the outstanding principal amount and extend the weighted average maturity of the long-term debt of Energy Future Holdings and its subsidiaries, the company said in its original exchange offer announcement on Oct. 5. American Electric Power Co. Inc. subsidiary Public Service Co. of Oklahoma on Nov. 9 raised $250 million through an offering of its 5.15% series H senior unsecured notes due Dec. 1, 2019. Net proceeds will be used for general corporate purposes, which may include repaying existing debt, funding its construction program, repaying advances from affiliates and replenishing working capital. Barclays Capital, BNY Mellon Capital Markets and Citigroup Global Markets acted as joint book-running managers on the offering. Xcel Energy Inc. subsidiary Northern States Power Co. - Minnesota on Nov. 9 completed an offering of $300 million of its 5.35% first mortgage secured bonds due Nov. 1, 2039. Net proceeds will be used to fund payment of a $250 million unsecured note that matured Aug. 1, to pay down short-term debt and for general corporate purposes, the company said. Cleco Corp. subsidiary Cleco Power LLC on Nov. 9 raised $145 million through an offering of its 6.50% senior unsecured notes due Dec. 1, 2035. Net proceeds will be used for general corporate purposes, including financing a portion of the construction costs related to the Acadiana Load Pocket transmission project. In equity activity, TC PipeLines LP on Nov. 13 completed an offering of 5 million common units priced at $38.00 per unit. The company plans to use net proceeds to reduce debt outstanding under its revolving credit facility and for general partnership purposes. Citigroup Global Markets, Merrill Lynch Pierce Fenner & Smith, Morgan Stanley and UBS Securities acted as joint book-running managers on the offering. NuStar Energy LP on Nov. 10 completed an offering of 5 million common units representing limited partnership interests. The units were priced at $52.45 per unit. Net proceeds will be used for general partnership purposes, including potential future acquisitions and growth capital expenditures, the company said. Morgan Stanley, UBS Securities, Credit Suisse Securities and Wells Fargo Securities acted as joint book-running managers on the offering. 
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